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Japan  and  China 


Published  by 

THE:  EASTANIAN 


JAPAN    AND    CHINA 


A  STUDY   OF  THE  RECENT  PROBLEMS 
BETWEEN  JAPAN  AND  CHINA 


BY 

THE  SECRETARY  OF  THE  EASTANIAN 


c  ^3, 


Reprint,  August,  1918 


.JUS*.  OUTLINES 


A.  Japanese  influence  in  China  concerns  the  world. 

B.  The  justifications  of  the  Japanese  aggression  upon  China  as  the  im- 
perialistic Japanese  see  them. 

C.  Japan's  opportunity  to  carry  out  her  aggressive  program  in  China. 

D.  Means  and  Ways ;  Influence  and  Results : 

1.  Diplomacy  backed  by  military  force. 

2.  Civil  wars  and  party  struggles  in  China. 

3.  Finance. 

4.  Trade  and  Industry. 

5.  The  control  of  military  forces  and  arsenals. 

6.  Emigration. 

E.  Why  not  let  Japan  annex  Manchuria? 

F.  The  Ishii-Lansing  Agreement. 

G.  Open  Door  Policy  and  the  "  Monroe  Doctrine  of  Asia." 
H.     China  must  be  left  to  develop  herself. 


JAPAN  AND  CHINA 


A.  JAPANESE    INFLUENCE    IN    CHINA     CONCERNS    THE 

WORLD. 

Since  the  beginning  of  the  world  war,  the  Japanese  influence  in  China 
has  spread  to  such  an  extent,  that  to  watch  its  movement  and  progress  re- 
quires practically  every  minute  of  a  student  of  the  problems  in  the  Far 
East.  China,  so  large  a  nation  and  so  rich  in  natural  resources,  yet  so 
weak,  is  situated  right  next  to  Japan,  an  aggressive  country,  a  land  of 
hunger.  While  the  European  nations  are  so  busy  with  themselves  at  home, 
Japan,  with  this  unequalled  opportunity,  can  do  anything  toward  China  that 
she  pleases,  but  the  problems  concerning  Japan  and  China  concern  the 
world.  Both  officially  and  unofficially,  secretly  and  publicly,  her  influence 
in  China  is  pushing  on  its  way.  After  this  war  the  European  powers  will 
once  more  turn  attention  to  their  interests  in  China.  They  will  either  fol- 
low the  aggressive  steps  of  Japan  or  see  to  it  that  the  movements  of  Japan 
in  China  shall  be  right  and  just.  The  situation  in  the  Far  East  will  be  as 
important  as  that  elsewhere.  This  article  attempts  to  give  a  little  knowl- 
edge of  most  of  the  recent  Japanese  movements  in  China. 

B.  THE    JUSTIFICATIONS    OF    JAPANESE    AGGRESSION    IN 

CHINA  AS  THE  IMPERIALISTIC  JAPANESE  SEE  THEM : 

"  I  am  proposing,  as  it  were,  that  the  nations  should  with  one  accord 
adopt  the  doctrine  of  President  Monroe  as  the  doctrine  of  the  world.  That 
no  nation  should  seek  to  extend  its  policy  over  any  other  nation  or  people, 
but  that  every  people  should  be  left  free  to  determine  its  own  policy,  its 
own  way  of  development,  unhindered,  unthreatened,  unafraid,  the  little 
along  with  the  great  and  powerful."  This  was  a  noble  address  which 
President  Wilson  delivered  to  the  Senate  on  January  22,  1917. 

Mr.  K.  K.  Kawakami,  the  famous  Japanese  writer  in  this  country, 
thinks  that  as  regards  overcrowded  nations  this  idea  is  not  justified.1 
Japan  is  such  a  small  nation  in  size,  but  so  overpopulated,  that  she  is  bound 
to  expand  and  to  seek  colonies.  Darwin's  theory  of  the  "  Struggle  for 
Existence  "  is  in  the  mind  of  every  Japanese  leader. 

"  Many  virtuous  Japanese  recoil  with  horror  from  the  cry  of  terri- 
torial expansion.  Territorial  expansion  or  aggrandizement  is  simply  the 
external  development  of  an  organized  state.  A  nation  professing  and  car- 

—3— 

M265004 


ryiiTg  otit  3  p:olic>^  of  territorial  expansion  is  a  nation  of  great  possibilities. 
A  nation  afraid  of  such  a  policy  is  one  already  on  the  down-hill.  The  cry 
for  acquisition  of  fresh  territory,  which  was  heard  everywhere  in  Ger- 
many, was  a  proof  of  German  Greatness."  This  statement  is  quoted  from 
one  of  the  most  prominent  Japanese  weeklies  by  Collier.2 

The  population3  of  Japan  in  1917  was  52,986,423.  Twelve  millions 
are  in  cities  while  the  rest  are  in  villages  and  towns.  Without  her  colonies 
Japan  has  148,756  square  miles  of  land,  only  25,000  of  which  are  under 
cultivation.  There  are  5,500,000  families  in  farming,  each  of  which  has 
an  average  of  from  two  to  three  acres.  This  shows  that  only  one-sixth  of 
the  land  in  Japan  can  be  cultivated;  she  has  to  have  more  land. 

The  problem  of  overpopulation  in  Japan  is  a  hard  problem  for  her 
government  to  solve.  Yet  she  still  wants  more  people.  She  expects  to 
have  100,000,000  in  the  next  forty  years,  which  will  not  include  the  popu- 
lation in  her  colonies.  This  means  more  colonies  for  them  to  live  in.  This 
war  has  shown  that  if  Japan  ever  goes  to  war  with  other  powers,  she  needs 
to  have  more  men  under  arms.  She  has  tried  hard  to  Japanize  the  Koreans 
and  to  seek  control  over  the  Chinese  military  forces  so  as  to  answer  the 
question  of  man  power  in  time  of  war. 

More  wealth  is  what  Japan  has  been  asking  for.  She  has  been  a  poor 
nation,  a  nation  greatly  in  debt  to  other  powers.  Heavy  taxes  have  been 
levied  on  her  people.  So  she  must  look  for  wealth.  China  is  rich  in  re- 
sources. She,  with  such  a  great  population,  is  open  to  exploitation.  She 
is  so  close  to  Japan  that  it  is  very  natural  for  Japan  to  seek  in  her  a  strong- 
hold both  in  commerce  and  industry. 

A  modern  nation  must  live  on  coal,  iron  or  steel.  This  is  another 
problem  that  Japan  must  face.  Shipbuilding  and  manufacturing  of  arms 
and  other  articles  in  Japan  have  used  up  more  steel  and  coal  than  she  can 
produce.  The  total  domestic  production4  of  iron  and  steel  in  Japan  in 
1916  was  490,000  tons;  imports  of  pig  iron  amounted  to  237,000  tons,  and 
steel  550,000  tons.  Of  course  Korea  furnishes  100,000  tons  per  year,  but 
that  cannot  help  the  situation  very  much.  The  following  figures  given  by 
Mr.  H.  Yoshikama,  assistant  Professor  in  Tokyo  University,  are  the  esti- 
mated consumption  of  Pig  iron  and  Steel  in  Japan: 

Year                                            Pig  Iron,  tons  Steel,  tons 

1918                                                     360,900  1,113,000 

1920                                                     430,000  1,295,000 

1923                                                     533,000  1,668,000 

1925                                                     617,000  1,786,000 

1928                                                     744,000  2,112,000 

Japan  must  look  elsewhere  for  coal  and  iron  and  steel.  On  the  other 
hand  China  is  rich  in  coal  and  iron.  What  can  stand  in  the  way  between 
this  hungry  tiger  and  the  fat  lamb? 


China  is  weak,  the  world  knows  it,  and  Japan  knows  it  too  well.  She  has 
no  close  ally  and  no  force.  She  can  be  annexed  at  any  moment  if  the  other 
world  powers  will  agree.  After  the  Chino-Japanese  War  of  1894-5  Euro- 
pean Powers  began  their  aggressive  policy  in  China.  So  the  Japanese  lead- 
ers think  that  Japan  must  have  a  share  in  the  spoils  of  China.  This  is 
another  of  her  excuses  in  being  unjust  to  China. 

Many  people  think  that  the  Near  East  started  this  world  war,  but 
after  this  war  the  European  nations  will  turn1  their  eyes  to  China.  As 
Mr.  K.  K.  Kawakami  says,  "  Whichever  side  may  win  the  war,  I  cannot 
but  apprehend  that  China  will  be  the  next  field  of  rivalry  among  the  Euro- 
pean Powers."  5  Political  leaders  in  Japan  have  called  for  annexation  of 
"A  piece  of  China  sufficient  to  provide  resources  needed  in  any  war  with 
the  Western  Nations."  6  To  annex  or  dominate  China  is  a  policy  of  Japan 
so  as  to  be  able  to  fight  against  the  Western  nations  or  to  maintain  peace 
in  the  Far  East. 

In  dealing  with  China,  Japan  is  divided  into  two  parties.  One  is  the 
continental  party,  which  comprises  mostly  military  leaders.  This  party  wants 
to  annex  Manchuria,  East  Inner  Mongolia,  Shantung  Province  and  Fukien 
Province  as  soon  as  possible.  Opposed  to  this  party  is  a  party  of  financiers, 
who  think  that  to  dominate  China  is  not  necessary  to  employ  military  force. 
If  Japan,  through  friendship,  can  control  the  commerce,  industry  and 
finance  of  China,  then  China  is  a  Japanese  China.  But  at  any  rate  both 
parties  have  no  mercy  on  China.  "A  united,  awakened,  organized,  efficient 
China  is  a  menace  to  the  very  existence  of  Japan.  As  far  as  the  Far  East 
is  concerned,  Japan  can  live  with  a  reasonably  sound  assurance  of  her 
future  security  under  one  of  the  two  following  conditions: 

(A.)     "  Eternal  continuation  of  weak  and  divided  China. 

(B.)  "  Building  up  the  position  and  resources  of  Japan  to  the  point 
where  she  will  be  able  to  stand  and  cope  with  an  awakened,  modernized, 
efficiently  administered  China." 7  In  view  of  recent  and  present  move- 
ments of  Japan  and  China,  doubtless  Japan  is  trying  to  keep  China  weak 
and  divided.  At  the  same  time  she  is  building  up  herself  to  meet  the 
future  China. 

C.    JAPAN'S   OPPORTUNITY  TO   CARRY  OUT  HER  AGGRES- 
SIVE PROGRAM  IN  CHINA. 

Japan  can  never  forget  how  she  was  blocked  by  Russia,  Germany  and 
France  in  trying  to  secure  Leao-Tung  Peninsula  from  China  after  the 
Chino-Japanese  war  of  1894-5.  This  would  suggest  that  when  the  Euro- 
pean nations  are  at  peace,  Japan  can  never  have  a  free  hand  in  China. 
One  can  readily  see  what  a  great  opportunity  this  war  has  given  to  Japan. 


She  is  an  ally  of  England.  The  interest  of  England  and  of  the  Entente  in 
the  Far  East  is  under  the  protection  of  Japan.  If  Japan  were  to  join  the 
Teutons,  what  a  tremendous  blow  it  would  be  to  the  Entente.  So  the  En- 
tente must  not  interfere  with  but  accept  what  Japan  wants  to  do  in  China. 
She  has  put  herself  in  the  place  of  Germany  in  China.  She  even  invades 
the  sphere  of  influence  of  her  ally  in  Central  China. 

The  longer  this  war  will  last  the  better  opportunity  Japan  will  have 
in  strengthening  her  position  and  influence  in  China. 

Now  Japan  is  on  the  side  of  the  Entente,  but  is  Japan  fighting  for 
world  democracy?  Mr.  T.  lyenozo  says  that  Japan  is  not  fighting  for 
such  a  high  ideal.  She  is  fighting  for  the  interest  of  herself.8  She  loans 
money  to  the  Allies  with  high  interest.  She  helps  Russia  with  ammun- 
tion  as  a  matter  of  business.  She  lends  ships  to  the  United  States  in  ex- 
change for  steel.  About  300  Japanese  soldiers  were  killed  in  Tsingtao, 
but  in  return  she  gets  all  German  interests  in  Shangtung.  Japan  is  the 
only  nation  that  gains  in  this  war. 

Since  establishment  of  the  Chinese  Republic,  China  has  been  in  the 
midst  of  civil  wars.  Parties  fight  against  parties.  This  is  a  good  chance 
for  Japan  to  keep  "  the  eternal  continuation  of  weak  and  divided  China." 
She  often  plays  one  party  against  the  other,  which  I  will  show  elsewhere 
in  this  article. 

D.     MEANS  AND  WAYS ;  INFLUENCES  AND  RESULTS. 
1.     DIPLOMACY  BACKED  BY  MILITARY  FORCE: 

It  is  not  easy  to  write  about  treaties,  both  known  and  secret,  between 
Japan  and  China.  Most  of  us  are  ignorant  of  their  secret  treaties.  Those 
which  ard  known  were  made  before  this  world  war  and  are  not  very  sig- 
nificant at  the  present  day.  Since  the  beginning  of  the  European  War, 
Japanese  demands  on  China  have  been  heard  quite  often.  The  famous 
"  21  demands  "  are  well  known  to  us. 

"  To  begin  with,  there  was  no  particular  justification  for  'the  making 
of  demands.  China  had  done  nothing  against  Japan;  there  had  been  no 
war  and  there  was  no  particular  contention  between  the  two  countries," 
says  S.  K.  Hornbeck.  Japan  was  ashamed  of  this  matter,  so  she  declared 
to  the  world  that  only  eleven  demands  had  been  made.9 

The  following  is  the  document  handed  to  President  Yuan  Shih-Kai 
by  Mr.  Hioki  on  January. 18,  1915 :10 

Section  1. 

The  Japanese  government  and  the  Chinese  government,  being  desirous  of 
maintaining  the  general  peace  of  eastern  Asia  and  further  strengthening  the 
friendly  relations  and  good  neighborhood  existing  between  the  two  nations, 
agree  to  the  following  articles: 


Article  1.  The  Chinese  government  engages  to  give  full  assent  to  all  mat- 
ters upon  which  the  Japanese  government  may  hereafter  agree  with  the  German 
government  relating  to  the  disposition  of  all  rights,  interests,  and  concessions 
which,  by  virtue  of  treaties  or  otherwise,  Germany  now  possesses  in  relation  to 
province  of  Shantung. 

Article  2.  The  Chinese  government  engages  that  within  the  province  of 
Shantung  and  along  its  coast  no  territory  or  island  will  be  ceded  or  leased  to  a 
third  power  under  any  pretext  whatever. 

Article  3.  The  Chinese  government  consents  to  Japan's  building  a  railway 
from  Cefoo  or  Lungkow  to  join  the  Kiau-Chau-Tsinan  railway. 

Article  4.  The  Chinese  government  engages,  in  the  interest  of  trade  and 
for  the  residence  of  foreigners,  to  open  by  itself,  as  soon  as  possible,  certain  im- 
portant cities  and  towns  in  the  province  of  Shantung  as  commercial  ports. 
What  places  are  to  be  opened  are  to  be  decided  upon  by  the  two  governments 
by  separate  agreement. 

Section  II. 

The  Japanese  government  and  the  Chinese  government,  since  the  Chinese 
government  has  always  recognized  the  special  position  enjoyed  by  Japan  in  south 
Manchuria  and  eastern  inner  Mongolia,  agree  to  the  following  articles: 

Article  1.  The  two  contracting  parties  mutually  agree  that  the  term  of 
lease  of  Port  Arthur  and  Dalny,  and  the  term  of  lease  of  the  South  Manchurian 
railway  and  the  Antung-Mukden  railway,  shall  be  extended  to  the  period  of 
ninety-nine  years. 

Article  2.  Japanese  officials  and  common  people  in  south  Manchuria  and 
eastern  inner  Mongolia  shall  have  the  right  to  lease  or  own  land  required  either 
for  erecting  suitable  buildings  for  trade  and  manufacture  or  for  farming. 

Article  3.  Japanese  officials  and  common  people  shall  be  free  to  reside  and 
travel  in  south  Manchuria  and  eastern  inner  Mongolia,  and  to  engage  in  business 
and  in  manufacture  of  any  kind  whatsoever. 

Article  4.  The  Chinese  government  agrees  to  grant  to  Japanese  officials 
and  common  people  the  mining  rights  of  all  mines  in  south  Manchuria  and  east- 
ern inner  Mongolia.  What  mines  are  to  be  opened  shall  be  decided  upon  by  the 
two  governments  jointly. 

Article  5.  The  Chinese  government  agrees  that  in  respect  of  the  two  cases 
mentioned  herein  below  the  consent  of  the  Japanese  government  shall  first  be 
obtained  before  action  shall  be  taken: 

(a)  Whenever  permission  is  granted  to  a  subject  of  a  third  power  to 
build  a  railway  or  to  make  a  loan  with  a  third  power  for  the  purpose  of  building 
a  railway  in  south  Manchuria  or  eastern  inner  Mongolia. 

(b)  Whenever  a  loan  is  to  be  made  with  a  third  power  pledging  the 
local  taxes  of  south  Manchuria  or  eastern  inner  Mongolia  as  security. 

Article  6.  The  Chinese  government  agrees  that  if  the  Chinese  government 
employs  political,  financial,  or  military  advisers  or  instructors  in  south  Man- 
churia or  eastern  inner  Mongolia  the  Japanese  government  shall  first  be  con- 
sulted. 

Article  7.  The  Chinese  government  agrees  that  the  control  and  manage- 
ment of  the  Kirin-Chang-chun  railway  shall  be  handed  over  to  the  Japanese 
government  for  a  term  of  ninety-nine  years,  dating  from  the  signing  of  this 
agreement. 

Section  III. 

The  Japanese  government  and  the  Chinese  government,  seeing  that  Japanese 

—7— 


financiers  and  the  Hanyehping  company  have  close  relations  with  each  other 
at  present,  and  desiring  that  the  common  interests  of  the  two  shall  be  advanced, 
agree  to  the  following  articles: 

Article  1.  The  two  contracting  parties  mutually  agree  that  when  the  oppor- 
tune moment  arrives  the  Hanyehping  company  shall  be  made  a  jcint  concern 
of  the  two  nations,  and  they  further  agree  that  without  the  previous  consent 
of  Japan,  China  shall  not  by  her  own  act  dispose  of  the  rights  and  property,  of 
whatever  nature,  of  the  said  company  to  dispose  freely  of  the  same. 

Article  2.  The  Chinese  government  agrees  that  all  mines  in  the  neighbor- 
hood of  those  owned  by  the  Hanyehping  company  shall  not  be  permitted,  with- 
out the  consent  of  the  said  company,  to  be  worked  by  other  persons  outside  of 
the  said  company,  and  further  agrees  that  if  it  is  desired  to  carry  out  any  under- 
taking which,  it  is  apprehended,  may  directly  or  indirectly  affect  the  interests 
of  the  said  company,  the  consent  of  said  company  shall  first  be  obtained. 

Section  IV. 

The  Japanese  government  and  the  Chinese  government,  with  the  object  of 
effectively  preserving  the  territorial  integrity  of  China,  agree  to  the  following 
articles : 

The  Chinese  government  engages  not  to  cede  or  lease  to  a  third  power  any 
harbor,  bay,  or  island  along  the  coast  of  China. 

Section  V. 

Article  1.  The  Chinese  government  shall  employ  influential  Japanese  as 
advisers  in  political,  financial,  and  military  affairs. 

Article  2.  Japanese  hospitals,  churches,  and  schools  in  the  interior  of 
China  shall  be  granted  the  right  of  owning  land. 

Article  3.  Inasmuch  as  the  Japanese  government  and  the  Chinese  govern- 
ment have  had  many  cases  of  dispute  between  Japanese  and  Chinese  police  to 
settle,  cases  which  have  caused  no  little  misunderstanding,  it  is  for  this  reason 
necessary  that  the  police  departments  of  the  important  places  in  China  shall  be 
jointly  administered  by  Japanese  and  Chinese,  or  that  the  Chinese  police  de- 
partments of  these  places  shall  employ  numerous  Japanese,  so  that  they  may 
at  the  same  time  help  to  plan  for  the  improvement  of  the  Chinese  police  service. 

Article  4.  China  shall  purchase  from  Japan  a  fixed  amount  of  munitions  of 
war,  say  50  per  cent,  or  more  of  what  is  needed  by  the  Chinese  government,  or 
there  shall  be  established  in  China  a  Sino-Japanese  jointly  worked  arsenal.  Jap- 
anese technical  experts  are  to  be  employed  and  Japanese  material  to  be  pur- 
chased. 

Article  5.  China  agrees  to  grant  to  Japan  the  right  of  constructing  a  rail- 
way connecting  Wuchang  with  Kiukiang  and  Nanchang,  another  line  between 
Nanchang  and  Hangchou,  and  another  between  Nanchang  and  Chao-chou. 

Article  6.  If  China  needs  foreign  capital  to  work  mines,  build  railways, 
and  construct  harbor  works,  including  dockyards,  in  the  province  of  Fukien, 
Japan  shall  be  first  consulted. 

Article  7.  China  agrees  that  Japanese  subjects  shall  have  the  right  to 
propagate  religious  doctrines  in  China. 

These  demands  concern  Japanese  rights  in  Manchuria  and  East 
Inner  Mongolia,  Shantung  Province  and  Fukien  Province.  They  seek  to 
control  the  munition  and  military  forces  of  China.  They  ask  for  the  in- 


dustrial  interest  in  Central  China.  They  demand  a  further  control  of  the 
Chinese  sea  coast.  "  In  reality  those  21  demands,  in  terms  meant  the  pos- 
itive subjection  of  China  by  Japan,"  says  Samuel  G.  Blythe.  So  unjust 
were  the  Japanese  demands  that  China  did  not  yield  until  an  ultimatum 
was  sent  to  her  by  Japan  and  she  was  threatened  by  a  Japanese  invasion. 
If  Japan  were  to  make  such  demands  from  the  United  States,  they  would 
have  made  every  American  crazy.  But  China  gave  way.  She  appealed  to 
the  justice  of  the  world.  Although  the  "Group  V"  was  postponed  when 
the  ultimatum  was  sent,  Japan  took  it  up  again  not  long  after. 

Furthermore,  part  of  this  "  Group  V "  was  demanded  immediately. 
That  is,  the  Chinese  government  was  asked  to  employ  influential  Japanese 
as  advisers  in  political,  financial  and  military  affairs.  The  political  and 
financial  advisers  are  already  there.  Whether  Japan  forced  China  to  accept 
them  or  not,  we  do  not  know,  but  in  regard  to  General  Aoki,  the  military 
adviser,  Mr.  S.  G.  Blythe  says  this,  "  General  Aoki,  one  of  Japan's  great 
soldiers,  working  as  a  colonel  .  .  .  the  Chinese  did  not  want  Aoki.  They 
understood  the  motives  of  Japan  in  insisting  that  China  should  accept  Aoki. 
The  Chinese  protested  as  well  as  they  could,  but  Aoki  is  there,  and  he  is 
the  military  adviser  of  the  Chinese,  forced  upon  China  by  Japan ;  and  that 
fact  is  of  significance  in  considering  the  real  attitude  of  Japan  "  n 

In  August  of  1916,  a  fracas  took  place  between  Chinese  and  Japanese 
troops  stationed  in  Cheng-chia-tun,  Manchuria.  This  is  called  the  Cheng- 
chia-tun  incident.  It  was  caused  by  trouble  between  a  Japanese  peddler  and 
a  few  Chinese  soldiers.  In  the  first  place  Japan  had  no  right  to  station 
troops  at  that  place.  China  had  repeatedly  protested  to  the  Japanese  gov- 
ernment against  their  presenece.  In  the  second  place  Japan  never  dis- 
cussed with  China  the  right  and  wrong  of  that  case,  but  she  proceeded 
directly  to  send  eight  demands  to  the  Chinese  government.  The  first  four 
demands  concerned  the  apology  from  Chinese  authorities  and  heavy  in- 
demnity for  the  killed  and  wounded  Japanese.  The  other  four  demands 
were  part  of  the  "  Group  V  "  of  the  "  21  demands."  China  was  to  agree 
to  the  employment  of  Japanese  police  advisers  by  Chinese  officials  of  South 
Manchuria.  She  was  also  to  agree  that  Japan  should  police  certain  parts 
of  Manchuria  and  East  Inner  Mongolia. 

The  Okuma  cabinet  resigned  after  the  Chung-chia-tun  incident.  Jap- 
anese writers  have  declared  that  Terauchi  cabinet  intends  to  maintain 
friendly  relations  with  China.  But  this  is  not  true.12  It  was  this  very 
cabinet  that  recently  sent  some  more  demands  on  China.13  (These  demands 
have  been  published  in  various  newspapers,  but  there  has  been  no  official 
or  unofficial  confirmation  or  denial  of  them.)  The  demands  are  these, — 
Japan  and  China  are  each  to  furnish  200,000  troops  to  maintain  order  in 
China,  or  the  alternative  of  Japanese  occupation  of  Shantung  and  Fukien 

—9— 


Provinces.  China  is  to  purchase  50%  of  her  ammunition  from  Japan,  an 
article  from  "  Group  V  "  under  the  "  21  demands."  Dockyards  and  Ar- 
senals in  China  are  to  be  controlled  by  Japan.  Japan  shall  have  the  right 
to  operate  any  mine  in  China.  Mongolia  shall  be  opened  to  Japan.  Special 
rights  shall  be  granted  to  the  Chino- Japanese  Exchange  Bank  in  Peking, 
which  is  a  Japanese  agent  to  control  Chinese  finance.  Other  newspapers 
refer  to  Japanese  advisers  to  the  Police  Department  of  the  Chinese  Central 
Government. 

By  reading  over  these  demands  it  is  justifiable  to  say  that  we  should 
not  believe  what  Japanese  statesmen  have  said  to  the  world.  During  the 
last  visit  of  K.  Ishii,  the  head  of  the  Japanese  special  mission  to  the  United 
States,  to  New  York,  did  he  not  'say  that  his  government  would  respect  the 
independence  and  integrity  of  China?1*  In  August,  1914,  Count  Okuma 
declared  to  the  world :  "  Japan  has  no  ulterior  motive,  no  desire  to  secure 
more  territory,  no  thought  of  depriving  China  or  other  people  of  anything 
which  they  now  possess."  15  So  on  March  third,  the  Peking  Daily  News 
said  editorially :  "  Two  months  ago  Baron  Hayashi  was  demanding  from 
China  the  virtual  abrogation  of  her  sovereignty  over  large  parts  of  Man- 
churia and  Eastern  Inner  Mongolia.  f  A  week  ago,  he  declared  himself, 
in  an  interview,  in  favor  of  full  and  real  independence  for  China. — A  '  full 
and  real  independence '  for  China  means  the  end  of  the  continental  policy 
for  Japan.  It  means  an  end  of  the  dream  of  Japanese  hegemony — of  Jap- 
anese leadership,  even  in  the  Far  East." 

These  demands  explain  very  clearly  Japanese  motives  toward  China. 

2.    CIVIL  WARS  AND  PARTY  STRUGGLES  IN  CHINA: 

No  matter  what  political  party  is  in  control  of  China  it  always  ap- 
peals to  Japan  for  financial  and  military  support.  Even  if  they  do  not  go 
to  Japan,  Japan  will  come  to  them.  This  is  to  keep  the  "  eternal  continu- 
ation of  weak  and  divided  China."  During  the  Yunnan  Rebellion  in  De- 
cember, 1915,  General  Aoki  was  the  strategic  general  in  charge  of  the  rebel 
forces,  and  this  resulted  in  the  defeat  of  Yuan  Shi  Kai's  plot  to  restore  the 
Monarchical  form  of  government  in  China.  At  the  same  time  the  Japanese 
in  Peking  were  on  the  side  of  Yuan  Shi  Kai.  That  is,  the  Japanese  were 
playing  the  North  of  China  against  the  South  of  China. 

The  military  party  in  China  is  composed  of  the  Chihli  men  and  the 
Anhwei  men.  It  is  difficult  to  get  them  united,  and  Japan  does  not  want 
them  to  unite.  It  is  her  great  aim  to  divide  the  Chinese  military  party.  If 
the  various  generals,  with  their  various  individual  armies,  can  be  arrayed 
against  one  another,  China  will  have  the  present  situation  of  Mexico,  which 
means  a  continually  divided  China. 

In  the  present  civil  war  of  China,  which  has  lasted  for  some  time 
already,  Japan  plays  a  great  part.  She  loans  money  and  ammunition  to 

—10— 


the  Central  Government  of  China  and  at  the  same  time  her  financial  agency 
in  Canton  is  also  helping  the  South  with  money. 

On  December  12,  1916,  a  Japanese  newspaper  in  Osaka  published  a 
piece  of  news  about  the  experience  of  a  Japanese  helping  the  Mongolians 
to  rebel  against  China.  It  is  very  clear  that  Japan  wants  to  start  trouble 
within  China  all  the  time,  and  yet  she  pretends  to  be  desirous  of  main- 
taining order. 

Japan  wants  to  dominate  China  as  Germany  has  dominated  Turkey, 
but  the  intrigue  of  Japanese  is  far  beyond  that  of  the  Germans. 

3.     FINANCE. 

Japanese  have  been  loaning  money  to  China  all  the  time.  They  can 
get  high  interest  and  valuable  property  as  security  for  it.  In  each  case 
Japanese  advisers  are  to  be  employed.  Dr.  Sakatani  is  the  financial  "  ad- 
viser "  to  China  now.  Japan  is  trying  to  do  to  China  what  England  has 
done  to  Egypt.  She  wants  to  control  China  through  finance.  She  loans 
money  to  the  Chinese  government,  both  central  and  local,  as  well  as  to 
Chinese  industrial  companies.  In  the  former  she  gets  control  of  Chinese 
government  property.  In  the  latter  she  gets  control  of  Chinese  industry. 
It  is  by  this  very  method  that  she  has  come  to  control  the  Hanyehping 
Company,  which  is  the  largest  iron  and  mining  work  in  China. 

"  Japan  is  buying  up  China  either  with  her  own  money  or  money  from 
other  Powers,  as  she  bought  Korea  with  Yen  104,000,000,  which  was  grad- 
ually advanced  to  that  unfortunate  country  four  years  prior  to  her  annexa- 
tion in  1910,"  Mr.  H.  K.  Tong  says  (Millard's  Review,  May  25th,  1918). 
Mr.  Tong  gives  the  following  figures  of  Japanese  loans  to  China  since  the 
outbreak  of  the  war  to  the  end  of  last  year : 

1.  Hanyehping  Loan  $  2,500,000 

2.  Kwangtung  Loan  1,000,000 

3.  Chiaotung  Loan  3,000,000 

4.  Customs  Loan  1,000,000 

5.  Paper  Mill  Loan  2,000,000 

6.  Hsin-ya  Co.  Loan  5,000,000 

7.  Fengtien  Loan  3,000,000 

8.  Hankow  Electric  Loan  1,000,000 

9.  Shih-Chen  Railway  Loan  5,000,000 

10.  Canton  Cement  Co.  Loan  1,700,000 

11.  Chiaotung  Loan  5,000,000 

12.  Kwangtung  Salt  Loan  1,500,000 

13.  Kirin-Changchun  Loan  6,000,000 

14.  Shangtung  Loan  1,500,000 

15.  Second  Chiaotung  Loan  20,000,000 

16.  Conservancy  Loan  5,000,000 

17.  Second  Advance  of  the  Currency  Loan    10,000,000 

18.  Sundry  Loan  6,449,000 

—11— 


In  addition  the  Telegraph  loan  of  Yen  20,000,000  has  been  signed. 
The  Hupeh  loan,  Shensi  loan,  Lung  Chi-Kwang's  loan,  Chang  Tso-ling's 
loan,  and  Yen  Shih-san's  loan  have  been  negotiated  and  may  have  been 
signed  by  this  time.  The  munition  loan,  which  is  not  mentioned  above,  is 
a  loan  in  munitions,  but  China  will  have  to  repay  in  money.  These  muni- 
tions are  used  to  fight  against  the  South  of  China. 

"An  example  of  Japan's  Chinese  financial  methods  in  China  is  found 
in  the  situation  in  Manchuria.  After  the  Japanese-Russian  War,  and  since 
then,  the  Japanese  established  many  branches  of  the  Yokohama  Specie 
Bank,  the  Korean,  and  their  other  banks  in  Manchuria.  When  the  pres- 
ent war  began  the  Japanese  spread  the  report  among  the  natives  that  the 
Russian  ruble  notes,  which  had  a  large  circulation,  were  worthless;  and 
the  Japanese  issued  large  quantities  of  '  Laotao '  and  '  Korean '  notes. 
When  the  moratorium  was  declared  the  Tuchun,  or  governor,  of  Feng-tien, 
fearing  that  the  order  might  disastrously  affect  the  banks  in  Manchuria, 
borrowed  three  million  dollars  from  the  Bank  of  Korea,  which  is  Japanese, 
to  increase  the  reserve  in  the  local  Manchurian  banks. 

"As  compensation  for  this  loan  the  Japanese  demanded  that  they 
should  be  allowed  to  issue  a  million  dollars  in  inconvertible  notes,  which 
the  Tuchuri  was  required  to  proclaim,  were  to  be  accepted  by  all  merchants 
and  by  government  officials  for  all  payments  due.  The  fact  is,  that  these 
inconvertible  notes  are  merely  fiat  money;  but  the  Japanese  forced  them 
on  the  Manchurians.  An  authority  of  Mukden  says  that  the  Japanese  have 
issued  thirty-five  million  two  hundred  and  forty  thousand  pieces  of  what 
they  call  '  gold  notes  '  and  fifty-five  million  pieces  of  '  silver  notes/  and 
that  all  these  are  inconvertible,  and  the  natives  of  Manchuria  will  have 
much  the  worst  of  it  in  the  end."  16 

The  most  significant  financial  event  in  China  was  the  opening  on  Feb- 
ruary 1  of  the  Exchange  Bank  of  China,  which  real  name  is  "  Sino- 
Japanese  Exchange  Bank."  This  is  a  Japanese  financial  agency  to  control 
Finance  in  China.  "  I  take  pleasure  in  announcing  the  opening  of  the 
Sino- Japanese  Exchange  Bank  in  Peking  with  satisfaction,  because  this 
bank  will  be  the  instrument  to  bring  about  a  close  economic  cooperation 
between  Japan  and  China."  This  is  the  statement  which  the  Japanese  min- 
ister of  Finance  said  to  the  Japanese  Diet  in  the  early  part  of  last  February. 

"  The  capital  of  this  bank  is  $10,000,000  and  each  country  is  to  pay 
half  of  it.  This  bank  is  governed  by  one  president  (a  Chinese),  one 
special  director  (a  Japanese),  and  six  directors  (three  Chinese  and  three 
Japanese).  The  bank  has  a  charter  from  the  Chinese  government  and 
also  from  the  government  of  Japan,  to  conduct  the  following  lines  of 
business:  (a).  Loans  and  discounts;  (b)  Deposits;  (c)  Exchange,  Busi- 
ness; (d)  Purchase  and  sale  of  Debentures;  (e)  Industrial  loans;  (f)  Give 
guarantee  and  loans,  etc.,  etc.  In  many  ways  the  bank  is  said  to  have 

—12— 


special  privileges  not  enjoyed  by  either  the  Bank  of  China  or  the  Bank  of 
Communications,  and  it  is  planned  to  establish  branches  in  both  China 
and  Japan."  1T 

This  bank  may  become  the  official  Bank  of  China  by  eliminating  the 
Bank  of  China  and  the  Bank  of  Communications,  as  Chinese  government 
institutions.  Japan  is  to  introduce  the  Japanese  Gold  "  Yen  "  standard  into 
China  through  this  bank  as  she  has  attempted  to  do  in  Manchuria  through 
the  Bank  of  Chosen. 

What  all  these  Japanese  loans  and  financial  agencies  mean  to  China — 
"A  Japanese  banker  connected  with  the  Mitsui  organization  once  laughed 
at  the  statement  of  a  prominent  American  banker,  who  spoke  about  security 
for  loans  to  China.  '  Why  worry  about  security  for  loans  in  China/  said 
the  Japanese  banker,  '  we  always  go  ahead  and  make  the  loans  and  then 
let  our  diplomats  worry  about  the  security.'  He  meant,  of  course,  that 
the  security  for  all  of  Japan's  loans  to  China  rested  not  with  China,  but 
with  the  Japanese  army  and  its  ability  to  enforce  payment."  18  This  Japan- 
ese can  represent  Japan  when  he  makes  this  very  true  statement. 

4.     TRADE  AND  INDUSTRY. 

Japan  never  can  be  a  strong  nation  without  .China.  China  is  the  most 
valuable  place  for  commerce  and  industry  upon  which  her  wealth  will 
depend. 

The  chief  export  from  China  has  been  silk  and  tea.  In  the  last  ten 
or  twenty  years  Japan  was  far  ahead  of  China  in  silk  and  tea  trade.  Let 
me  show  it  by  copying  down  some  of  the  statistics  from  a  report  of  the 
Chinese  Custom  House  in  telling  the  exports  in  silk  both  from  Japan  and 
China  from  1872  to  1915 : 

EXPORTS  IN  SILK. 

Year  From  China  From  Japan 

1872  £10,370,000  i  1,830,000 

1894  6,800,000  5,9,00,000 

1899  12,300,000  8,900,000 

1905  10,560,000  11,600,000 

1910  13,300,000  18,300,000 

1911  12,450,000  18,140,000 

1912  14,300,000  20,020,000 

1913  15,840,000  25,300,000 

1914  10,915,000  20,462,000 

1915  13,072,000  20,425,000 

Japan  is  far  ahead  of  China  in  the  tea  trade.  As  Mr.  Yu  Lin-Chang 
says,  "  China  has  long  since  been  outstripped  in  the  tea  trade  by  such  rivals 
as  Japan,  India,  and  Ceylon,  notwithstanding  that  intrinsically  the  Chinese 
tea  is  by  far  the  best,  as  it  contains  less  of  the  active  poisonous  principle 
than  do  the  others." 

—13— 


Japan  is  also  gaining  year  after  year  in  trade  with  China.  A  report 
in  regard  to  Japan's  trade  with  China  in  1917  has  just  been  given  out  by 
the  Financial  Office  in  Tokyo. 19  The  figures  show  that  China  is  rapidly 
becoming  the  best  market  in  the  world  for  Japan.  Manchuria  played  an 
important  part  in  Japan's  foreign  trade  last  year,  as  can  be  seen  by  the 
following  returns : 

1917— Exports  to  China,  Yen  289,157,000;  increase,  Y.  116,367,000. 

Imports  from  China,  Yen  112,620,000;  increase,  Y.  19,331,000. 
In  Manchuria  alone: 
1917— Exports  to  Manchuria,  Y.  42,069,000;  increase,  Y.  19,519,000. 

Imports  from  Manchuria,  Y.  13,667,000 ;  increase,  Y.  3,446,000. 
The  following  table  gives  the  chief  Japan  exports  to  China  in  1913 
(that  is  prior  to  the  war)  : 

H.  K.  CY. 

Cotton  Yarn  $32,128,433 

Cotton  Fabrics  22,591,539 

Sugar  9,157,756 

Copper  and  Copper  ware  6,341,055 

Coal  6,339,464 

Matches  4,489,275 

Marine  products  4,242,390 

Flour  2,714,391 

Timber  2,401,276 

Clothing,  head  and  foot  gear  2,050,036 

Since  the  outbreak  of  the  war  other  articles  found  market  in  China : 

H.  K.  CY. 

Enameled  ironware  $       485,491 

Empty  kegs  and  boxes  451,841 

Woolen  yarn  379,913 

Telegraph  and  telephone  accessories  378,502 

Lamps  and  accessories  365,596 

Fresh  fruits  361,623 

Dye  stuff,  face  powder,  etc.  284,340 

Beds,  tables,  covers,  etc.  283,297 

Canvas  276,092 

Paints  and  Varnishes,  etc.  276,680 

We  can  compare  the  commerce  of  various  nations  with  that  of  Japan 
in  China,  which  may  show  the  Japanese  progress  along  this  line: 

H.  K.  CY. 

1914— Exports  from  U.  S.  and  Canada  $  55,345,171 

Exports  from  European  Nations  188,107,889 

Exports  from  Japan  129,717,576 

1916— Exports  from  U.  S.  and  Canada  105,932,196 

Exports  from  European  Nations  188,938,101 

Exports  from  Japan  233,011,916 
—14— 


I  do  not  know  how  many  industrial  factories  are  owned  by  Japanese 
in  China.  It  is  a  goodly  riumber,  especially  in  Manchuria. 

Let  us  see  about  the  Japanese  influence  on  the  railroads  in  China.  One 
of  the  "  21  Demands  "  is  that  Japan  shall  have  the  right  to  build  railroads 
in  South  China,  but  this  demand  was  postponed  for  negotiation  and  has 
never  been  discussed,  unless  secretly,  since  then.  At  the  present  time  rail- 
roads under  Japanese  influence  in  China  are  mostly  in  Manchuria.  We 
may  divide  them  into  three  classes,  namely:  Railroads  actually  under 
Japanese  control,  Railroads  with  Japanese  financial  influence,  and  Rail- 
roads which  Japan  has  demanded  the  right  to  build. 

Railroads  actually  under  Japanese  control: 

Dairen-Changchun  435.8  mi. 

Mukden-Antung  170.2  mi. 

Dairen-Port  Arthur  37.1  mi. 

Suehiatun-Fushun  3.09  mi. 

Tsinan-Tsingtao  293.3  mi. 

And  a  few  branches  in  Shantung  (used  to  be  Germans'). 
Railroads  with  Japanese  financial  influence  (up  to  the  end  of  1916)  : 

LOAN  FROM  JAPAN 

Nanchang-Payang  i    500,000 

Kirin-Changchun  215,000 

(It  has  been  said  that  this  railroad  is  actually  under  Japanese  con- 
trol.) 

Peking-Hankow  £1,220,000 

Mukden-Simman-tun  32,000 

Sze-Ping-Chi  to  Changchia-tun  500,000 

Autung-Ching  20,000 

Lun  Chun-Yue  Hai  100,000 

Railroads  which  Japan  has  demanded  the  right  to  build : 

Chai  Yuan-Hai  Shing  120  mi. 

Sze-Ping-Chi-Taonan  230  mi. 

Taonan-Yit-Ho-Kan  450  mi. 

Changchun-Taonan  450  mi. 

Kirin-Hai  Lung  60  mi. 

Tsinan-Suntuck  120  mi. 

Some  of  these  railroads  are  either  under  construction  or  have  been 
completed. 

A  good  deal  of  the  mining  industry  in  China  is  also  under  the  control 
of  Japan.  She  can  operate  any  mine  which  is  within  the  Japanese  railway 
zone,  which  is  thirty  li's.  She  knows  that  China  is  the  only  place  that  she 
can  turn  for  mining,  especially  iron  and  coal.  Japan  recently  demands  from 
China  that  she  shall  have  the  right  to  operate  any  mine  within  China.  One 
should  not  feel  strange  to  see  Japanese  engineers  everywhere  in  China  in- 
vestigating mines. 

—15— 


Let  us  turn  to  some  of  the  important  Japanese  enterprises  in  China. 
The  Fang  Sze  coal  mine,  the  Pun  Shang  coal  mine  and  Chin  Ling  iron 
mine  are  in  Shantung,  with  a  capital  of  12,000,000  mk.  (this  used  to  be 
Germany's).  The  Sack-Pa-Ling  coal  mine  and  the  Yiu-Toi  coal  mine  are 
in  Manchuria.  The  Fushan  coal  mine  is  very  prosperous.  It  has  a  capital 
of  Yen  12,254,065.  It  contains  800,000,000  tons  of  coal.  With  Yan-Toi 
mine  they  both  have  a  daily  output  of  about  8,000  tons  of  coal.  The  Pen- 
hsi-hu  coal  mine  and  the  An-shan-chang  iron  mine  are  joint  Japanese- 
Chinese  enterprises.  It  has  been  estimated  that  the  Pen-hsi-hu  mine 
contains  123,000,000  tons  of  coal  and  An-shan-chang  contains  100,000,000 
tons  of  ore.20  She  has  obtained  an  iron  mine  at  Fung-Kuan-Shan  and  a 
few  small  mines  through  the  Yangtsze  valley.  She  has  tried  hard  to  ob- 
tain the  iron  mines  at  Fung-Wang-Shan  and  Mei-Ling-Kwan  at  Kiangsu 
Province. 

The  Hanyehping  Company  used  to  be  a  very  large  Chinese  enterprise. 
It  controls  the  Hanyang  iron  works  and  a  number  of  coal  and  iron  mines 
at  the  Yangtsze  valley.  Once  this  company  had  a  loan  of  about  $15,000,000 
from  the  Yokohoma  Specie  Bank,  which  brought  it  under  Japanese  influ- 
ence. This  company  has  to  pay  to  Japan  13,000  tons  of  iron  ore  on  a  fixed 
price  as  the  interest  of  the  loan  each  year.  As  the  loan  was  secured  by  a 
mortgage  on  the  property,  Japan  thus  held  the  Hanyehping  Company  in 
a  double  grip.  A  Japanese  engineer  is  to  be  employed  by  the  company. 

The  Japanese  motive  in  regard  to  this  company  can  be  seen  in  the 
"  21  demands."  It  says,  "  The  Chinese  government  shall  engage  not  to 
permit,  without  the  consent  of  the  company,  anyone  other  than  the  com- 
pany to  work  mines  in  the  neighborhood — and  also  to  obtain  consent  from 
the  Japanese  financiers  in  case  it  is  proposed  to  take  other  steps  which  may 
effect  .the  company  directly  or  indirectly."  It  was  not  very  long  ago  that 
the  Japanese  government  asked  the  Chinese  government  to  permit  her  to 
send  troops  to  protect  the  Hanyehping  Co.,  when  some  fighting  was  going 
on  there  between  the  troops  of  the  North  and  the  South  of  China. 

It  has  been  estimated  that  the  percentage  of  the  total  known  iron 
holdings  in  China  available  for  modern  treatment  is  about  as  follows: 

Japanese  or  Sino-Japanese  170,000,000  tons 

Chinese  Government  reserve  100,000,000  to  150,000,000  tons 

Chinese  Cos.  or  individuals  50,000,000  to     70,000,000  tons 21 

Since  the  outbreak  of  this  war  the  Japanese  shipping  monopoly  in  the 
Pacific  has  become  greater  every  day.  With  the  opportunity  of  this  war 
and  the  subsidy  of  the  government,  Japanese  Shipping  companies  have 
gained  tremendously  recently. 

At  the  outbreak  of  war  Japanese  shipyards,  capable  of  constructing 
ships  over  1,000  tons,  numbered  only  six  or  seven.  By  October,  1917,  it 

—16— 


was  estimated  that  the  number  had  risen  to  thirty.    The  annual  output  of 
these  yards  is  about  600,000  tons. 

The  following  report  may  show  pretty  well  the  progress  of  Japanese 
shipping  in  the  China  Seas : 

1914 — American  ships  1,047,423  tons 

European  ships  40,982,782  tons 

Japanese  ships  23,996,972  tons 

1916 — American  ships  799,913  tons 

European  ships  39,587,776  tons 

Japanese  ships  24,233,835  tons 

This  shows  that  Japan  has  gained  236,863  tons. 

Will  Japan  dominate  China  through  commerce  and  industry?  That 
is  why  the  continental  party  of  Japan  is  opposed  by  the  financiers  who 
think  that  they  can  control  China  through  the  Power  of  Finance. 

5.  THE  CONTROL  OF  MILITARY  FORCES  AND  ARSENALS: 

By  reading  the  "  21  demands  "  and  the  recent  demands  which  Japan 
has  sent  to  China,  one  can  easily  see  how  anxious  Japan  is  to  control  the 
munitions  of  China.  She  demands  that  China  should  purchase  50%  of 
her  munitions  £rom  Japan.  This  demand  of  1915  was  postponed  for  nego- 
tiations. After  having  joined  the  Allies,  China  had  a  munition  loan  from 
Japan,  which  she  will  have  to  repay  in  money.  In  the  recent  demands  Japan 
again  wants  China  to  purchase  50%  of  the  munitions  she  uses.  Through 
this  munition  loan  and  the  recent  demands  Japan  seeks  to  control  the  Ar- 
senals of  China  by  asking  China  to  employ  Japanese  engineers  and  to  buy 
materials  for  the  Chinese  Arsenals,  Furthermore,  this  is  to  prevent  China 
from  having  any  war  with  Japan  in  the  future.  Buying  munitions  is  a 
matter  of  business.  Japan  has  no  right  to  demand  of  China  from  what 
country  she  should  buy  her  munition.  I  should  not  doubt  for  a  moment 
that  some  day  Japan  will  demand  that  China  buy  everything  from  Japan 
that  she  needs. 

It  is  also  in  the  recent  demands  that  Japan  shall  send  200,000  troops, 
with  an  equal  number  of  Chinese  troops,  to  maintain  order  in  China.  It 
has  been  said  that  in  case  China  will  send  troops  to  Europe  or  Siberia,  they 
must  be  under  Japanese  generals. 

We  all  know  that  General  Aoki,  a  great  soldier  of  Japan,  is  now  in 
Peking  as  a  military  adviser  to  the  Chinese  government.  Japanese  mili- 
tary advisers  are  in  Manchuria.  Japan  is  trying  to  control  indirectly  the 
troops  of  China. 

6.  EMIGRATION. 

On  account  of  her  overpopulation  Japan  has  tried  her  best  to  foster 
emigration  in  Manchuria.  We  must  bear  in  mind  that  Japan  has  already 


taken  Korea,  88,000  sq.  mi.,  Formosa,  13,552  sq.  mi.,  Dairen  and  Port 
Arthur,  1,378  sq.  mi.,  Luchu  Islands,  5,550  sq.  mi.,  and  Kiaochow,  2,500 
sq.  mi.,  from  China.  Japan  has  great  administrative  power  in  Manchuria 
already  and  now  her  eyes  are  cast  on  Eastern  Inner  Mongolia,  Shantung 
and  Fukien  Provinces. 

Manchuria  has  an  area  of  363,700  sq.  mi.  It  has  been  said  that  it  is 
capable  of  supporting  a  population  of  100,000,000.  Today  Manchuria  has 
a  population  of  17,500,000.  In  Manchuria  China  has  13,000,000  Chinese, 
4,000,000  of  Manchu  race,  and  Japan  has  100,000  Japanese,  and  250,000 
Koreans.  There  are  about  200,000  Japanese  in  China  and  the,  above  state- 
ment has  shown  that  Japan  has  one-half  of  this  number  in  Manchuria. 
Many  Koreans  have  sold  their  lands  in  Korea  to  Japanese  and  come  over 
to  Manchuria.  Japan  is  enjoying  this  movement  and  Japan  can  point  out 
that  she  has  the  interests  of  some  350,000  of  her  subjects  resident  in  Man- 
churia to  look  after. 

Since  the  presenting  of  the  "  21  demands  "  Japan  has  secured  the  right 
to  own  lands  in  Manchuria  and  Eastern  Inner  Mongolia.  This  is  the  way 
that  they  do  it :  The  Japanese  banks  in  Manchuria  loan  money  to  the  Chi- 
nese with  high  interest,  secured  by  a  mortgage  on  land.  If  the  Chinese  are 
unable  to  repay  their  loans,  the  Japanese  banks  get  control  of  their  lands. 
It  has  been  reported  that  over  8,980  mows  (7.08  mows  equal  1  acre)  of 
land  in  South  Manchuria  have  gone  to  the  Japanese  banks  in  this  way. 

It  is  also  said  that  over  twenty  Japanese  experts  have  been  sent  into 
Eastern  Inner  Mongolia  to  investigate  the  valuable  lands  there.  It  seems 
that  if  Manchuria  and  Eastern  Inner  Mongolia  pass  to  the  possession  of 
Japan,  they  will  serve  the  purposes  of  exploitations  and  colonization. 

E.     WHY  NOT  LET  JAPAN  ANNEX  MANCHURIA? 

Japan  can  annex  Manchuria  at  any  moment.  China  as  well  as  the 
world  can  hardly  protest  against  her  at  present  or  even  for  some  time 
after  this  war.  It  is  up  to  Japan  to  decide  when  to  do  it.  But  we  must 
say  whether  or  not  such  action  is  justified  as  regards  China  as  well  as  the 
people  in  Manchuria.  We  can  judge  this  question  by  reviewing  what  Japan 
has  done  in  Korea. 

Japanese  publicists  keep  on  telling  the  world  how  much  the  annexa- 
tion of  Korea  by  Japan  means  to  the  Koreans  as  well  as  to  the  world. 
Let  us  hear  what  the  Koreans  say  about  it.  Henry  Chung,  a  Korean,  in 
his  letter  to  the  Editor  of  the  Chinese  Students'  Monthly  in  the  May  num- 
ber of  1918,  says :  "  Japan,  profiting  by  the  experience  of  the  colonizing 
nations  of  the  West,  is  applying  in  Korea  a  method,  the  most  unique  and 
effective  known  in  the  history  of  imperial  conquest.  .  .  .  The  Oriental  Col- 
onization Company  tried  to  buy  lands  from  the  Koreans,  but  the  Koreans 
refused  to  sell  them.  Here  the  government  aid  was  brought  in.  All  finan- 

—18— 


cial  machinery  in  Korea  is  controlled  by  the  Bank  of  Chosen,  a  government 
bank  in  Seoul.  This  powerful  financial  institution,  through  its  branch 
banks  and  agencies,  called  in  all  the  specie  in  the  country  and  made  the  land 
practically  moneyless  as  far  as  the  circulating  medium  was  concerned.  Cash 
the  Koreans  must  have  to  pay  taxes  and  to  buy  the  necessities  of  life.  The 
only  way  they  could  get  money  was  to  sell  their  real  estate.  The  value  of 
land  dropped  to  one-half,  in  many  locilities  as  low  as  one-fifth,  of  its  orig- 
inal value.  Then  the  Bank  of  Chosen  sent  out  agents  all  over  the  country 
and  bought  the  land  for  tens  of  thousands  of  Japanese  emigrants  sent  over 
by  the  Oriental  Colonization  Company."  In  so  doing  one-fifth  of  the  rich- 
est land  in  Korea  is  in  the  hands  of  the  Japanese.  He  goes  on  to  say  that 
in  commerce  and  industry  the  Japanese  have  the  complete  monopoly. 
"  Now  the  Nipponese  tradesmen  practically  drive  out  all  other  nationali- 
ties and  have  the  market  to  themselves.  .  .  .  Thus  the  Korean  people  are 
reduced  to  industrial  serfdom,  and  are  forced  to  submit  to  Japanese  rule 
through  economic  pressure."  He  shows  us  how  Japan  made  a  systematic 
collection  of  all  works  of  Korean  history  and  literature  and  burned  them. 
The  Japanese  language  has  been  made  the  official  tongue  and  also  the  lan- 
guage of  the  schools  and  public  gatherings.  In  this  the  church  stands  as 
an  obstacle,  which  led  to  the  "  Persecution  of  the  Church  "  in  1912.  The 
educational  regulations  forbid  religious  services  and  the  teaching  of  his- 
tory, geography  and  Korean  language  in  all  the  schools  of  Korea.  Korean 
children  are  taught  to  salute  the  Japanese  flag  and  worship  the  Japanese 
emperor's  tablet.  No  Korean  student  is  permitted  to  go  to  Europe  or 
America  to  finish  his  education.  "  Korea  has  been  Prussianized,"  says 
Tyler  Dennett,  as  Mr.  Henry  Chung  quotes  it.  "  Japan  has  even  gone  so 
far  as  to  forbid  Korean  students  to  come  to  the  United  States  to  finish 
their  education.  The  Prussianizing  of  Alsace-Lorraine  never  went  to  such 
an  extreme  as  that." 

F.     THE  ISHII-LANSING  AGREEMENT. 

When  the  famous  Ishii-Lansing  Agreement  was  signed  last  Novem- 
ber 6th,  1917,  a  number  of  writers  both  in  newspapers  and  magazines 
rejoiced  and  believed  that  Japan  could  be  trusted  in  her  relation  to  China. 
They  thought  that  Japan  would  respect  the  independence  or  territorial 
integrity  of  China.  It  is  strange  to  me  that  a  land-hungry  people  can  be 
trusted  in  such  a  degree.  Of  course  this  agreement  introduces  the  phrase 
"  special  interest,"  which  may  mean  anything  to  Japan. 

Japan  has  signed  many  other  agreements  with  other  nations  of  sim- 
ilar nature.  In  1902  she  signed  one  with  England,  which  is  this :  "  The 
High  Contracting  Parties,  having  mutually  recognized  the  Independence 
of  China  and  Korea,  declare  themselves  to  be  uninfluenced  by  any  aggres- 
sive tendencies  in  their  country.  .  .  ." 

—19— 


The  Russo-Japanese  agreement,  signed  in  1906,  declares:  "The  two 
high  contracting  parties  recognize  the  Independence  and  territorial  integ- 
rity of  the  Empire  of  China,  and  the  principle  of  equal  opportunity  in 
whatever  concerns  the  commerce  and  industry  of  all  nations  in  that  Em- 
pire, and  engage  to  sustain  and  defend  the  maintenance  of  the  status  quo 
and  respect  for  this  principle  by  all  the  pacific  means  within  their  reach." 

Similar  pledges  were  signed  with  France  and  with  the  United  States 
in  1907  and  1908.  Was  there  any  value  in  signing  another  agreement 
between  Japan  and  the  United  States,  as  the  Ishii-Lansing  Agreement, 
which  is  similar  to  that  of  1908,  except  by  introducing  the  famous  phrase, 
"  special  interests  "  ?  There  may  be,  but  does  Japan  respect  sucn  agree- 
ments ? 

In  the  first  treaty  of  Alliance  with  England,  Japan  agreed  to  respect 
the  independence  of  China  and  Korea.  In  the  second  treaty  of  the  same 
alliance  the  "  special  interests "  phrase  is  elaborated,  which  led  to  the 
aggression  of  Korea. 

In  spite  of  so  many  pledges  that  Japan  has  signed  with  other  Powers 
about  respecting  the  rights  and  integrity  of  China,  the  "  21  demands  "  and 
the  recent  demands  were  sent  to  China,  which  gave  no  respect  at  all  to  the 
integrity  of  China.  The  recent  demands  were  sent  in  the  latter  part  of 
last  March,  which  was  just  five  months  after  the  Ishii-Lansing  Agreement 
was  signed.  One  of  these  demands  is  the  adoption  of  a  plan  for  the  oper- 
ation of  two  hundred  thousand  Japanese  troops  with  an  equal  number  of 
Chinese  to  restore  order  in  China,  or  the  alternative  of  Japanese  occupa- 
tion of  Shantung  and  Fukien  Provinces. 

The  newspapers  have  kept  on  telling  us  from  time  to  time  the  Jap- 
anese interference  of  the  rights  of  China  within  China.  A  Japanese  Police 
Station  was  once  established  in  Amoy,  Fukien.  Japanese  civil  officers  have 
been  in  many  places  in  Shantung,  in  spite  of  strong  protest  from  China. 
Chinese  subjects  in  Manchuria  are  often  killed  by  Japanese  soldiers  and 
policemen.  Import  duties  may  not  be  paid  in  Manchuria.  The  Peking 
Gazette,  a  famous  Chinese  Daily,  was  ordered  to  close  by  the  demand  of 
the  Japanese  minister  at  Peking,  because  of  its  unfavorable  attitude  toward 
Japan.  Her  postoffices  in  China  are  over  one  hundred  thirty  in  number. 

The  Ishii-Lansing  Agreement  has  not  a  bit  of  effect  upon  the  aggres- 
sive policy  of  Japan  in  China.  As  Carl  Cron  says  in  his  article,  "  We 
complete  the  Chinese  Wall,"  in  the  Sunset:  "Then  it  may  be  seen  that 
while  fighting  in  Europe  for  the  rights  of  small  nations  and  to  make  the 
world  safe  for  Democracy,  we  have  for  the  sake  of  present  security  in  the 
Pacific,  foresworn  the  policy  which  has  protected  the  rights  of  China  and 
have  removed  the  last  safeguard  against  the  disintegration  of  the  most 
populous  republic  on  earth."  22 

—20— 


G.     OPEN    DOOR    POLICY    AND    THE    "MONROE    DOCTRINE 
OF  ASIA." 

The  so-called  "  Open  Door  "  policy  in  China  means  equal  opportunity 
for  commerce  and  industry  in  China.  That  means  that  every  nation  shall 
have  the  same  opportunity  in  Commerce  and  Industry  in  China.  This  may 
be  true  in  places  where  the  Japanese  influence  has  not  yet  reached.  Let  us 
see  what  this  policy  means  in  Manchuria.  No  other  railway  is  allowed  to 
be  built  parallel  to  the  South  Manchuria  Railroad.  Goods  of  other  nations 
handled  by  the  Japanese  railroads  and  ships  are  always  detained  and  inter- 
fered with.  We  must  bear  in  mind  that  Japan  has  the  monopoly  of  railroads 
and  shipping  transportation  in  Manchuria.  Japan  should  be  concerned  first 
for  loans  to  build  Railroads  in  Manchuria. 

In  the  "  21  demands  "  it  says  that  if  China  needs  foreign  capital  to 
work  mines,  build  railroads  and  to  construct  harbor  works,  including  dock- 
yards in  the  Province  of  Fukien,  Japan  shall  first  be  consulted.  No  other 
company  is  allowed  to  operate  any  mine  in  the  neighborhood  of  those 
owned  by  the  Hanyehping  Company.  Japan  is  not  maintaining  the  "  open 
door,"  but  is  really  trying  to  close  the  door. 

We  have  often  heard  of  the  so-called  "  Monroe  Doctrine "  of  Asia 
or  "Asia  for  Asiatics."  Japan  always  admires  Germany  a  good  deal.  Ger- 
many has  tried  to  dominate  Central  Europe,  the  Balkan  States  and  Asia 
Miner. 

Japan  is  always  copying  this  movement  in  Asia.  She  wants  to  be  the 
Germany  of  Asia.  She  has  gone  even  farther  than  Germany.  She  has 
consolidated  her  own  position  in  Manchuria  and  Eastern  Inner  Mongolia. 
She  has  driven  Germany  out  of  Shantung  and  is  successor  to  German  rights. 
She  has  undertaken  to  invade  the  British  sphere  of  influence.  She  stands 
in  a  position  to  menace  and  to  dictate  to  the  Chinese  government. 

This  "  Monroe  Doctrine  "  is  to  be  against  European  Powers,  but  Great 
Britain  has  more  interests  and  power  in  Asia  than  any  other  nation,  and 
Great  Britain  is  Japan's  ally.  Japan's  "  Monroe  Doctrine  "  is  aggressive 
and  not  self-excluding. 

Russia  has  6,500,000  sq.  mi.  of  territory  and  Great  Britain  has  2,000,- 
000  sq.  mi.,  with  a  total  population  of  400,000,000  in  Asia.  China  is  six- 
teen times  as  large  as  Japan.  Can  Japan  maintain  this  Doctrine? 

Japan  seeks  to  be  tutor  of  China.  She  does  not  concede  that  the  basis 
of  her  own  civilization  was  gotten  from  China  in  former  years.  Of 
course  she  has  been  ahead  in  adopting  the  western  civilization.  The  sim- 
ple reason  of  this  may  be  found  that  her  civilization  is  somewhat  like  a 
costume  that  can  be  put  on  or  taken  off.  It  is  if  a  Japanese,  wearing  a 
Chinese  costume,  exchanges  for  one  from  the  West.  But  then  China  does 

—21— 


not  have  to  go  to  Japan  for  her  tutors  for  the  western  civilization.     She 
may  go  to  the  original  sources.    Japan  has  nothing  to  give  China. 

Furthermore  she  does  not  seek  to  build  up  China  as  an  honorable 
tutor.  She  seeks  to  keep  her  weak  and  divided.  Such  never  can  be  the 
motive  of  the  tutor  we  would  like. 

H.     CHINA  MUST  BE  LEFT  TO  DEVELOP  HERSELF. 

The  aggressive  policy  of  Japan  in  China  is  opposed  to  this  great  war 
aim  "  To  make  the  world  safe  for  Democracy."  Her  program  in  China  is 
purely  imperialistic.  If  Democracy  is  going  to  win  in  this  world  war,  Jap- 
anese Imperialism  must  either  give  way  or  it  will  mean  another  war  be- 
tween Democracy  and  Imperialism.  On  the  other  hand  if  unfortunately 
the  Imperialism  should  win  in  this  war,  the  domination  of  China  by  Japan 
will  arouse  the  Leaders  of  Imperialism  to  be  jealous  of  her,  which  leads 
to  either  partitioning  of  China  or  a  great  war  in  the  Far  East  as  a  result 
of  national  rivalry.  So  the  domination  of  China  by  Japan  will  never  pre- 
serve peace  in  the  future. 

China  has  been  struggling  for  a  place  in  the  new  world.  In  the  name 
of  justice  and  right  she  should  not  be  interfered  with  and  hindered  in  her 
development.  She  wants,  not  interference,  but  friendly  help  that  she  may 
take  her  place  among  the  people  of  the  world  and  that  in  the  new  world 
of  Democracy.  She  may  make  her  contribution  to  the  new  civilization! 
A  fair  chance  and  a  friendly  hand:  That  is  peace.  That  is  justice.  That 
is  democracy. 


—22— 


REFERENCES 


1  Japan  in  the  World  Politics,  by  K.  K.  Kawakami,  page  54. 

2  Collier,  September  15,  1917,  page  7. 

8  Asia,  February,  1918,  page  130,  and  Japan  in  the  World  Politics,  page  50. 

4  Asia,  May,  1918,  page  414. 

8  Japan  in  the  World  Politics,  page  187. 

'Collier,  September,  1917,  page  7. 

'Asia,  December,  1917,  page  790. 

'  Outlook,  January,  1918,  "  Why  Japan  has  not  sent  an  Expeditionary  Force 

to  Europe." 
•  Contemporary  Politics  in  the  Far  East,  by  S.  K.  Hornbeck,  page  305. 

10  Contemporary  Politics  in  the  Far  East,  page  307. 

11  The  Saturday  Evening  Post,  May  19,  1917,  page  22. 
"World's  Work,  December,  1917,  "Japanese  Menace  to  China." 
13  New  York  Times,  April  10,  1918. 

"World's  Work,  December,  1917,  "Japanese  Menace  to  China." 

15  Contemporary  Politics  in  the  Far  East,  page  302. 

16  The  Saturday  Evening  Post,  May  19,  1917. 
"Millard's  Review,  February  16,  1918,  page  356. 
18Millard's  Review,  February  16,  1918,  page  357 

19  The  Far  Eastern  Review,  April,  1918,  page  167. 

20  Asia,  May,  1918,  page  414. 

21  Asia,  May,  1918,  page  413. 

22  Sunset,  January,  1918,  page  72. 


THE    EASTANIAN 

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Y.  L.  LEE,  Secretary  and  Treasurer 
193  East  College  Street 
Oberlin,  Ohio,  U.  S.  A. 

K.  T.  WONG,  Business  Manager 

Care  of  Cheung  Mow  Tai  Co. 

Oi  Yuk  West  St. 

Canton,  China 


For  this  reprint  we  heartily  thank  the 

CHUNG  WOH  WIN  KOON 

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